Watford have confirmed they are not awaiting any outstanding payments from Portsmouth over the sale of Mike Williamson and Tommy Smith.

The Hornets insist they have been paid the money they were due from Pompey so far and that the next instalment is due at the end of January.

Watford hoped the Premier League would hand them a proportion of the £7m TV money Pompey were due if the governing body decided to divert the cash directly to the clubs owed money.

But today the Premier League have announced the money will be repaid to "undisputed football creditors that were overdue at the time of meeting", which suggests the Hornets may not receive a section of the money.

Smith and Williamson both moved to Portsmouth in the summer in £2m and £3m deals respectively but a large proportion of the transfer fees are being paid in instalments.

However, the south coast club are in a dire financial position, have struggled to even pay their players on a number of occasions in recent months and reportedly owe in the region of £10m to other clubs in England and abroad.

Portsmouth also have estimated debts of £60m and face a winding up petition from HM Revenue & Customs.

The club are currently waiting to hear if their transfer embargo will be lifted and have today been told the Premier League will divert their latest £7m television money to the various clubs owed cash.

Watford will not comment on how much money is due from Pompey as it is 'commercially sensitive' information but have confirmed they did contact the Premier League to clarify the 2008 FA Cup winners' current situation and how it would affect the Hornets.

Once the January payments have been made, Watford are due further instalments in the summer and although the club would not divulge the details, they did confirm there are set deadlines for the instalments to be paid.

Portsmouth officials met with the Premier League on Tuesday and Wednesday to argue their case for the transfer embargo to be lifted and for the club to receive the £7m TV money.